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Home , Flushing High School, Kingsland Homestead, Terrace on the Park

An Economic Snapshot of Flushing,

Thomas P. DiNapoli Kenneth B. Bleiwas State Comptroller Deputy Comptroller Report 10-2012 September 2011

The neighborhood of Flushing, located in north- Highlights central Queens, has a rich history steeped in • The number of businesses in Flushing grew by religious tolerance and cultural diversity. Founded 37.6 percent between 2000 and 2009, compared in 1645, Flushing was the first permanent to 5.7 percent in the rest of the City. settlement in Queens. It is also considered the • Nearly 90 percent of the area’s businesses had birthplace of religious freedom in North America, fewer than ten employees, which was a much where settlers issued the “Flushing Remonstrance” higher rate than in the State and the nation. in 1657, defying Governor Peter Stuyvesant’s • The number of jobs in Flushing has grown every demand that the town expel Quakers and other year since 2005. religious groups. Today, there are more than 200 • houses of worship in Flushing, including the Old In 2010, Flushing added jobs at a rate of Quaker Meeting House (the oldest house of 3.1 percent, far outpacing the rest of Queens and the rest of the City. worship in New York State). • The largest employment sector is health care Beginning in the 1980s, a wave of immigration and social assistance. In 2010, this sector transformed Flushing into one of the most accounted for one-third of the neighborhood’s ethnically diverse communities in Queens, which jobs and more than 40 percent of its wages. is ’s most diverse borough. Today, • Since the start of the recession, total wages rose the greater Flushing area has the third-largest by 16.9 percent (much faster than the rest of concentration of immigrants in New York City, Queens) to reach $1.7 billion in 2010. with slightly more than half of its population born outside the United States. Residents from China • In 2009, more than half of the population was and Korea are the most numerous, and have made foreign-born, far greater than the citywide rate (35.6 percent). Flushing a thriving economic community and center for Asian culture. • Public school enrollment grew by 11.3 percent over the past six years, resulting in significant Downtown Flushing is a major transportation hub, overcrowding. which has helped the area’s economic • The intersection of and Roosevelt development and resiliency. Flushing has added Avenue is the third-busiest in New York City. jobs every year since 2005, even during the Great Recession. Small businesses are a major source of • The Main Street Flushing subway station is the jobs, and have expanded at a faster rate than in the busiest station outside of , and the rest of the City. With an increasing concentration tenth-busiest in the system. of doctors’ offices in the area, health care and • Home values declined less during the recession social assistance have accounted for significant and recovered more strongly in 2010 than in the growth in jobs and small businesses. rest of Queens. • Flushing’s economic success has placed heavy Rents rose by 41.1 percent between 2002 and demands on its infrastructure and community 2008, faster than the rest of Queens and the rest of the City. services, which will be further strained by new economic development projects that are planned • With its many ethnic restaurants, produce or currently underway. Addressing this challenge stores, and other retail establishments, Flushing is important to Flushing’s economic future and to has become a shopping destination that attracts its quality of life. people from across the City and the region.

Office of the State Comptroller 1 Neighborhood Overview Population and Demographics Easy access to transportation helped Flushing Boosted by immigration, the population in develop. The opening of the Flushing Railroad in Flushing grew by 2 percent between 2000 and 1854, which later became part of the 2010, to reach 171,530 residents.1 This growth Rail Road (LIRR), made rural portions of Queens rate was faster than in the rest of Queens, and only more accessible. Urbanization accelerated in the slightly slower than in the rest of New York City. early 20th century, as roads and bridges were built Residents of Chinese descent (both domestic and and the subway system reached Flushing in 1928. foreign-born) were the largest ethnic group in Today, the LIRR provides commuter rail access to Flushing (nearly 40 percent of the population in Manhattan and eastern Long Island. The Flushing 2010), while residents from Korea were the next- Main Street LIRR station, however, is not largest group (13 percent of the area’s population). handicap-accessible and is in need of renovation. Of the 55 neighborhoods in New York City (as The Number 7 subway line currently runs from defined by the U.S. Census Bureau), the greater Flushing to Times Square in Manhattan, and is Flushing area had the third-highest share of being extended farther west to 34th Street and foreign-born residents in 2009 (53.5 percent of the Eleventh Avenue, with service on the new portion population). Two nearby neighborhoods had a expected to begin in 2013. higher share of immigrants: Elmhurst/Corona Flushing is also a major bus hub, with 21 MTA (65.5 percent) and Jackson Heights (61.8 percent). routes that carry about 69 million passengers Immigrants in the greater Flushing area come from annually. Several major highways serve the area, more than 70 different countries, with the largest and LaGuardia Airport is nearby. shares from mainland China (29.4 percent) and Alongside Flushing’s many new developments are Korea (17.1 percent), followed by Colombia older historical properties, such as the Bowne (5.6 percent), Taiwan (4.2 percent), Ecuador House (the oldest house in Queens, built in 1661), (4.1 percent), and India (3.8 percent). the , and Flushing Town In January 2010, the State Comptroller reported Hall (which is now an arts and cultural center). that neighborhoods with large immigrant The lobby of the landmarked but deteriorating populations had stronger business growth than the RKO Keith’s Theatre will be incorporated into a rest of the City. Between 2000 and 2009, the 17-story, 357-unit, mixed-use rental complex. number of business establishments in the greater Flushing was also the site of the first commercial Flushing area grew by 37.6 percent, much faster nursery in the United States, and downtown than in the rest of Queens (14.2 percent) and the Flushing is home to the , rest of the City (5.7 percent). which is a LEED (Leadership in Energy and Of the City’s 55 neighborhoods, the Flushing area Environmental Design) platinum-certified facility. had the 11th-highest concentration of senior citizens (15 percent) in 2009. Flushing has several Flushing Meadows Corona Park, which hosted the senior centers, and redevelopment of the RKO 1939 and 1964 World’s Fairs, is the second-largest Keith’s Theatre will include a new senior center. park in New York City. Among the park’s facilities are the , the Population growth has increased enrollment in the Queens of Art, the Terrace on the Park neighborhood’s public schools by 11.3 percent catering hall, and the Flushing Meadows Corona between academic years 2004-2005 and 2010- Park Pool and Rink, the largest recreation complex 2011, compared to a 3.2 percent decline in the rest in any city park. of the City. High school enrollment growth in Flushing was especially strong, at 27 percent. Queens College, located along Flushing’s southern Overall, 12 of the 19 schools in Flushing are border, was recently rated by The Princeton operating above capacity. , Review as one of the nation’s most diverse for example, is 29 percent above capacity. campuses. The school has more than 20,000 students and offers bachelor’s and master’s degrees in over 100 areas of study. The college’s 1 Flushing is defined in this report as ZIP codes 11354, 11355, first residential hall opened in 2009. and 11358, but some data are only available for the greater Flushing area, which includes Whitestone and College Point. 2 Office of the State Comptroller Employment The four largest employment sectors in Flushing accounted for most of the job growth in the years Small business predominates in Flushing. since the recession began. Gains were led by According to the U.S. Census Bureau, health care and social assistance, Flushing’s 76.4 percent of the 5,570 businesses in Flushing largest employment sector. This sector added employed fewer than five workers in 2009, 1,110 jobs since 2007, bringing employment to compared to 60.5 percent in New York State and 13,050 jobs in 2010—or one-third of the area’s 54.6 percent nationwide. private sector jobs. This was much greater than the Nearly 90 percent of the area’s businesses had sector’s share in the rest of Queens (19.6 percent) fewer than ten employees, which was a much and the rest of the City (15.7 percent). higher rate than in the State and the nation. Only Strong job growth in the next three largest sectors 18 firms had more than 250 employees, and half between 2007 and 2010 reflected the rapid of these were located in the health care and social development and business growth in the area. As a assistance sector—which includes large hospitals result, by 2010, total employment in retail trade such as New York Hospital Queens, as well as (5,040 jobs), accommodation and food services nursing care facilities and home care services. (3,350 jobs), and construction (2,535 jobs) Other large firms were located in subsectors such accounted for nearly 29 percent of all area jobs. as commercial printing and home improvement centers. Wages More than half of all businesses were concentrated Job growth in Flushing, combined with gains in in the four sectors that were among the largest average salaries, fueled an increase in total wages, employers: retail trade, other services (e.g., which rose by 16.9 percent during the 2008-2010 personal services and auto repair), health care and period. Flushing outperformed the rest of Queens, social assistance, and construction. where wages declined by 1.3 percent. The average salary across all industries in Flushing grew by Employment has grown every year since 2005, 9 percent during this period—to reach $43,890— and continued to rise even during the Great compared to 0.2 percent for the rest of Queens. Recession (see Figure 1), outpacing job growth in the rest of Queens and the rest of New York City. The health care and social assistance sector, with This pattern continued in 2010 as Flushing added one-third of local jobs and a relatively high jobs at a rate of 3.1 percent, while the rest of average salary, accounted for more than Queens showed a small decline and the rest of the 40 percent of total wages in Flushing in 2010. The City had only modest job growth of 0.7 percent. In sector’s average salary ($57,350) is significantly 2010, the number of jobs in Flushing reached higher than the sector’s average in the rest of nearly 39,000, which was 14.5 percent more than Queens ($40,110), reflecting a greater in 2005. concentration of doctors’ offices in Flushing.

Figure 1 Housing Total Employment in Flushing Nearly half of all households (48.8 percent) in the 40 greater Flushing area lived in owner-occupied 38 housing in 2008 (the latest year for which data are

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b available), compared to 45 percent in the rest of

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Queens and 32.3 percent in the rest of the City.

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u 34 o While the market for one-, two-, and three-family

h T homes in the greater Flushing area declined during 32 the downturn, with the median sales price

30 dropping by 10.5 percent between 2007 and 2009 2005 2006 2007 2008 2009 2010 from its peak of $670,000, the market showed Note: Includes data for Flushing ZIP codes 11354, 11355, and 11358. signs of recovery in 2010. The median sales price Source: NYS Department of Labor in the area rose by 2.5 percent to $615,000, compared with a decline of 4.5 percent for the rest of Queens.

Office of the State Comptroller 3 The market for condominiums and cooperatives The project, which was approved by the New (which account for about one-third of the owned York City Council in July 2010, is expected to housing units in the greater Flushing area) create 2,600 construction jobs and 1,900 performed well in 2010 as the median sales price permanent jobs, with construction expected to increased by 8 percent. The median sales price begin in 2012. The City has also approved the recovered almost all the value it lost during 2009 construction of Macedonia Plaza, a 140-unit (from the peak of $250,000), reaching $248,500. affordable housing project that includes retail and community space on a portion of Municipal Lot 1. Between 2002 and 2008 (the latest period for which data are available), rents rose faster in the A $125 million development is being constructed greater Flushing area (41.1 percent) than they did at the intersection of Prince Street and 39th in the rest of Queens (28.1 percent) and the rest of Avenue. The mixed-use project, which is expected the City (35.7 percent). In 2008, the median rent to open in 2014, will feature a 168-room Hyatt for all rental apartments in the area was $1,200, Place hotel, condominiums, underground parking, which was higher than elsewhere in Queens and office, retail and community space. ($1,025) and the City ($950). Market-rate rentals accounted for almost 44 percent of all rental units On Union Street in downtown Flushing, the (the same share as elsewhere in Queens), which Eastern Mirage, a 100,000-square-foot complex, was a higher share than in the rest of the City will contain a boutique condo hotel, luxury condo (34.8 percent). apartments, and a medical office building (the North Queens Medical Center). Eastern Mirage is Economic Development being constructed with the assistance of Flushing has broad appeal for business and $17 million in federal stimulus funds. residential development. The area has a vibrant Sky View Center, formerly known as Flushing downtown area, with many shops, two major Town Center, is an 800,000-square-foot shopping hotels and several boutique hotels, and more than center that opened in late 2010 on a 14-acre site 60 bank branches; enjoys excellent access to along the . The facility includes transportation; and is located near regional national retailers such as Best Buy, Target and attractions such as and the United States BJ’s Wholesale Club. Sky View Parc, a 448-unit Tennis Association’s National Tennis Center. luxury condominium development built above the One of the last projects completed in downtown mall, has faced sluggish sales during the recession. Flushing before the Great Recession was Queens Crossing, a state-of-the-art, mixed-use facility that The New York City Economic Development opened in 2008. This 407,000-square-foot, 12- Corporation has issued a request for proposals for story building includes ground-floor retail space, Phase I of a multi-billion dollar redevelopment restaurants, a catering hall, a community facility, plan for Willets Point, an industrial area just east and Class A office and condominium space. of Flushing. The full plan includes more than 5,500 units of housing, a convention center and Development has continued despite the recession, extensive retail, entertainment, office, and open although work on some projects was delayed. In space. downtown Flushing, Municipal Parking Lot 1, a 5- acre City-owned facility on Union Street between With its many ethnic groceries and restaurants, 37th and 39th avenues, is in the process of being Flushing has become a prime culinary destination. redeveloped into Flushing Commons. This For example, a 36,000-square-foot grocery store $850 million mixed-use development will feature recently opened at the Sky View Center, which 620 residential units, 234,000 square feet of office carries foods from China, India, Indonesia, Japan, and/or hotel space, 185,000 square feet of retail Korea, the Philippines, Taiwan, Thailand, space, a community facility, and 1,600 parking Singapore, and Vietnam. spaces. The Flushing YMCA will relocate to the development.

For additional copies of this report, please visit our website at www.osc.state.ny.us or write to us at: Office of the State Comptroller, New York City Public Information Office 633 Third Avenue, New York, NY 10017 (212) 681-4840